Income Tax Return: If you have not yet filed Income Tax Return, then fill it this month, because from July 1, you may have to pay a big price for it. Huh.
New Delhi: Income Tax Return: If you have not yet filed Income Tax Return, then fill it this month, because from July 1, you may have to pay a big price, let us tell you that the Income Tax Department has made a lot of rules for those who do not file ITR. hardened. The last date for filing Income Tax Return (ITR) for the financial year 2020-21 has been extended from July 31 to September 30. The new portal of Income Tax has also started from today.
Fill ITR otherwise TDS, TCS will be doubled
According to the new rules of the Finance Act, 2021, if a taxpayer does not file income tax return for two consecutive years, then he will have to pay double TDS and TCS. If the TDS, or TCS arrears for these two years are 50 thousand rupees or more, then TDS will have to be paid according to the higher rates. This rule will come into effect from July 1, 2021, the penal TDS and TCS rates will be 10-20 percent, which is usually 5-10 percent.
TDS will have to be paid like this
According to the new TDS rules, under section 206AB of the Income Tax Act 1961, TDS can be charged at twice the existing provisions of the Income Tax Act or twice the prevailing rate or 5 per cent, whichever is higher. For TCS also, it will be payable according to the prevailing rate or 5% whichever is higher as per the existing provisions.
This rule will not apply to them
These rules of section 206AB of income tax Salary under section 192, payment of dues of employees under 192A, lottery under 194B, amount won in crossword, amount won in horse race, investment in securitization trust under 194LBC Income earned from and will not be applicable on cash withdrawal.
Apart from this, it will not be applicable to non-resident taxpayers who do not have permanent establishment in India under section 206AB. If both sections 206AA (higher TDS rate in case of non-PAN) and 206AB are applicable, then the TDS rate will be higher than the rates mentioned above. As far as TCS is concerned, more TCS will be applicable under section 206CC and 206CCA.
What is TDS?
The amount is given to the employee after deducting the tax in the income, the tax that has been deducted is called TDS i.e. Tax Deducted at Source. It is deducted on different types of income sources like salary, interest or commission received on any investment etc. For example, the company who does a job in a salaried class, already deducts TDS and then puts the salary in the employee’s account. This TDS company gives to the government.
What is TCS?
Tax Collected at Source i.e. TCS means that a seller, dealer, shopkeeper collected tax from the customer and deposited it to the government. This is called TCS.